Global LNG Trade up 12% in 9M: Hoegh

Hoegh LNG has provided an overview of the worldwide LNG market so far this year, in its 3Q results published November 16.

During 9M2017, it said that global LNG trade reached 217mn metric tons, up 12% year on year, with the largest contributors to growth coming from the Chinese (up 7mn mt) market, from South Korea (up 4.5mn mt), Mexico (up 3mn mt), Italy (up 2.6mn mt) and Japan (up 2.1mn mt), with incremental supply coming from Australia, the US, Malaysia, Angola and Nigeria.

So far in 2017, LNG export facilities with a nameplate capacity of 17.5mn mt have produced first cargoes, with another 85mn mt to follow in coming years. “Plans to increase Qatari production by 30%, or 24mn mt/yr, [by 2024] adds further to future volume growth potential,” noted Hoegh, referring to Qatar's ambitious plans announced in July and since followed up with discussions with key western majors.

“Höegh LNG has the platform to retain a leading position in the FSRU market, and is confident it will reach its goal of having 12 FSRUs in operation or under construction by 2019,” the company noted; it currently has six in service (see map below).

“Demand for FSRUs is growing as LNG becomes more easily available,” it concluded, noting: “The fleet of FSRUs stands at 28 units, while the orderbook consists of 12 units, of which four have been ordered directly by projects, and these will therefore not be available to the general market.”

This slide above from Hoegh LNG 3Q2017 results shows how extensive the use of FSRUs is worldwide, where its six FSRUs are currently deployed, and current developments in red (not all involving Hoegh) in the FSRU sector.

The 2nd FSRU to be deployed in Pakistan (shown in the graphic above) belongs to BW/Mitsui. Hoegh confirmed November 16 a setback to the Pakistan project in which it is involved.

Mark Smedley